Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Jun. 30, 2015 | Mar. 30, 2015 | |
Document and Entity Information: | |||
Entity Registrant Name | CASTLE GROUP INC | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Entity Central Index Key | 918,543 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Common Stock, Shares Outstanding | 10,056,392 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | cagu | ||
Entity Public Float | $ 1,693,545 |
THE CASTLE GROUP INC. CONSOLIDA
THE CASTLE GROUP INC. CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Current Assets | ||
Cash and cash equivalents | $ 2,370,557 | $ 1,753,780 |
Accounts receivable, net of allowance for bad debts | 2,037,058 | 2,365,071 |
Deferred tax asset | 509,117 | 474,092 |
Note receivable, current portion | 15,000 | 15,000 |
Prepaids and other current assets | 384,170 | 443,011 |
Total Current Assets | 5,315,902 | 5,050,954 |
Property plant & equipment, net | 6,032,375 | 6,701,806 |
Deposits and other assets | 146,271 | 186,246 |
Note receivable | 178,536 | 185,018 |
Investment in limited liability company | 562,367 | 564,064 |
Deferred tax asset | 390,331 | 651,744 |
Goodwill | 54,726 | 54,726 |
TOTAL ASSETS | 12,680,508 | 13,394,558 |
Current Liabilities | ||
Accounts payable | 2,694,688 | 2,541,770 |
Deposits payable | 816,264 | 862,527 |
Current portion of long term debt | 364,870 | 374,736 |
Current portion of long term debt to related parties | 34,325 | 45,072 |
Accrued salaries and wages | 1,521,489 | 1,579,974 |
Accrued taxes | 52,507 | 61,482 |
Other current liabilities | 3,232 | 2,714 |
Total Current Liabilities | 5,487,375 | 5,468,275 |
Non Current Liabilities | ||
Long term debt, net of current portion | 5,509,766 | 6,621,571 |
Long term debt to related parties, net of current portion | 37,919 | 72,244 |
Total Non-Current Liabilities | 5,547,685 | 6,693,815 |
Total Liabilities | 11,035,060 | 12,162,090 |
Stockholders' Equity | ||
Preferred stock, $100 par value, 50,000 shares authorized, 11,050 shares issued and outstanding in 2015 and 2014, respectively | 1,105,000 | 1,105,000 |
Common stock, $.02 par value, 20,000,000 shares authorized, 10,056,392 and 10,046,392 shares issued and outstanding in 2015 and 2014, respectively | 201,129 | 200,929 |
Additional paid-in capital | 5,093,614 | 4,877,774 |
Retained deficit | (4,803,759) | (4,978,419) |
Accumulated other comprehensive income | 49,464 | 27,184 |
Total Stockholders' Equity | 1,645,448 | 1,232,468 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 12,680,508 | $ 13,394,558 |
THE CASTLE GROUP INC. BALANCE S
THE CASTLE GROUP INC. BALANCE SHEET (PARENTHETICAL) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position | ||
Preferred stock authorized | 50,000 | 50,000 |
Preferred stock par value | $ 100 | $ 100 |
Preferred stock issued | 11,050 | 11,050 |
Preferred stock outstanding | 11,050 | 11,050 |
Common stock authorized | 20,000,000 | 20,000,000 |
Common stock par value | $ 0.02 | $ 0.02 |
Common stock issued | 10,056,392 | 10,046,392 |
Common stock outstanding | 10,056,392 | 10,046,392 |
THE CASTLE GROUP INC. CONSOLID4
THE CASTLE GROUP INC. CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues | ||
Revenue attributed from properties | $ 12,334,439 | $ 13,160,295 |
Management & service | 11,871,366 | 11,128,940 |
Other revenue | 3,400 | 251,700 |
Total Revenues | 24,209,205 | 24,540,935 |
Operating Expenses | ||
Attributed property expenses | 11,302,895 | 11,873,580 |
Payroll and office expenses | 11,554,657 | 10,887,909 |
Administrative and general | 506,114 | 537,754 |
Depreciation | 217,269 | 227,143 |
Total Operating Expense | 23,580,935 | 23,526,386 |
Operating Income | 628,270 | 1,014,549 |
Investment income | 114,503 | 202,995 |
Interest expense | (341,725) | (324,133) |
Income before taxes | 401,048 | 893,411 |
Income tax provision | (226,388) | (243,318) |
Net Income | 174,660 | 650,093 |
Net Income Applicable to Common Stockholders | $ 91,785 | $ 567,218 |
Earnings Per Common Share Basic | $ 0.01 | $ 0.06 |
Earnings Per Common Share Diluted | $ 0.01 | $ 0.05 |
Weighted Average Shares Basic | 10,053,296 | 10,029,406 |
Weighted Average Shares Diluted | 10,421,629 | 10,397,739 |
THE CASTLE GROUP INC. CONSOLID5
THE CASTLE GROUP INC. CONSOLIDATED STATEMENT COMPREHENSIVE INCOME - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Comprehensive Income Statement | ||
Net Income | $ 174,660 | $ 650,093 |
Other Comprehensive Income | ||
Foreign currency translation adjustment | 22,280 | (3,901) |
Total Comprehensive Income | $ 196,940 | $ 646,192 |
THE CASTLE GROUP INC. CONSOLID6
THE CASTLE GROUP INC. CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Cash Flows from Operating Activities | ||
Net Income | $ 174,660 | $ 650,093 |
Depreciation | 217,269 | 227,143 |
Stock issued as compensation | 2,000 | 4,800 |
Warrants granted as compensation | 0 | 49,320 |
Non cash interest expense | 200,040 | 200,040 |
Investment income | (114,503) | (202,995) |
Deferred taxes | 226,388 | 243,318 |
(Increase) decrease in Accounts receivable | 225,851 | 85,654 |
(Increase) decrease in Other current assets | 36,025 | (120,466) |
(Increase) decrease in Notes receivable | 6,482 | 10,348 |
(Increase) decrease in Deposits and other assets | 20,480 | 24,284 |
Increase (decrease) in Accounts payable and accrued expenses | 290,515 | (273,474) |
Increase (decrease) in Deposits payable | (36,647) | 262,309 |
Net Change From Operating Activities | 1,248,560 | 1,160,374 |
Cash Flows from Investing Activities | ||
Distributions from investments | 116,200 | 102,900 |
Purchase of assets | (369,890) | (69,364) |
Net Change from Investing Activities | (253,690) | 33,536 |
Cash Flows from Financing Activities | ||
Proceeds from notes | 200,000 | 0 |
Payments on notes to related parties | (31,072) | 0 |
Payments on notes | (468,784) | (548,448) |
Net Change from Financing Activities | (299,856) | (548,448) |
Effect of foreign currency exchange rate on changes in cash and cash equivalents | (78,237) | (28,897) |
Net Change in Cash and Cash Equivalents | 616,777 | 616,565 |
Beginning Balance | 1,753,780 | 1,137,215 |
Ending Balance | 2,370,557 | 1,753,780 |
Supplementary Information | ||
Cash Paid for Interest | (141,685) | (190,059) |
Forgiveness of debt from related party | 14,000 | 0 |
Cash Paid for Income Taxes | $ 0 | $ 0 |
THE CASTLE GROUP, INC. CONSOLID
THE CASTLE GROUP, INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY (DEFICIT) YEARS ENDING DECEMBER 31, 2015 & 2014 - USD ($) | Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Deficit | Accumulated Other Comprehensive Income (Loss) | Total |
Balance preferred shares, beginning balance at Dec. 31, 2013 | 11,050 | 0 | 0 | 0 | 0 | 11,050 |
Balance common shares, beginning balance at Dec. 31, 2013 | 0 | 10,026,392 | 0 | 0 | 0 | 10,026,392 |
Stockholders' Equity, beginning balance at Dec. 31, 2013 | $ 1,105,000 | $ 200,529 | $ 4,624,014 | $ (5,628,512) | $ 31,085 | $ 332,116 |
Net Income | $ 0 | $ 0 | $ 0 | $ 650,093 | $ 0 | $ 650,093 |
Stock issued as compensation, shares | 0 | 20,000 | 0 | 0 | 0 | 20,000 |
Stock issued as compensation, value | $ 0 | $ 400 | $ 4,400 | $ 0 | $ 0 | $ 4,800 |
Warrants granted as compensation | 0 | 0 | 49,320 | 0 | 0 | 49,320 |
Foreign currency translation adjustment | 0 | 0 | 0 | 0 | (3,901) | (3,901) |
Forgiveness of debt from related party | 0 | |||||
Non cash interest expense | $ 0 | $ 0 | $ 200,040 | $ 0 | $ 0 | $ 200,040 |
Balance preferred shares, ending balance at Dec. 31, 2014 | 11,050 | 0 | 0 | 0 | 0 | 11,050 |
Balance common shares, ending balance at Dec. 31, 2014 | 0 | 10,046,392 | 0 | 0 | 0 | 10,046,392 |
Stockholders' Equity, ending balance at Dec. 31, 2014 | $ 1,105,000 | $ 200,929 | $ 4,877,774 | $ (4,978,419) | $ 27,184 | $ 1,232,468 |
Net Income | $ 0 | $ 0 | $ 0 | $ 174,660 | $ 0 | $ 174,660 |
Stock issued as compensation, shares | 0 | 10,000 | 0 | 0 | 0 | 10,000 |
Stock issued as compensation, value | $ 0 | $ 200 | $ 1,800 | $ 0 | $ 0 | $ 2,000 |
Warrants granted as compensation | 0 | 0 | 0 | 0 | 0 | |
Foreign currency translation adjustment | 0 | 0 | 0 | 0 | 22,280 | 22,280 |
Forgiveness of debt from related party | 0 | 0 | 14,000 | 0 | 0 | 14,000 |
Non cash interest expense | $ 0 | $ 0 | $ 200,040 | $ 0 | $ 0 | $ 200,040 |
Balance preferred shares, ending balance at Dec. 31, 2015 | 11,050 | 0 | 0 | 0 | 0 | 11,050 |
Balance common shares, ending balance at Dec. 31, 2015 | 0 | 10,056,392 | 0 | 0 | 0 | 10,056,392 |
Stockholders' Equity, ending balance at Dec. 31, 2015 | $ 1,105,000 | $ 201,129 | $ 5,093,614 | $ (4,803,759) | $ 49,464 | $ 1,645,448 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Notes | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies Organization The Castle Group, Inc. was incorporated under the laws of the State of Utah on August 21, 1981. The Castle Group, Inc. operates in the hotel and resort management industry in the State of Hawaii, New Zealand, and the Commonwealth of Saipan under the trade name Castle Resorts and Hotels. The accounting and reporting policies of The Castle Group, Inc. conform with accounting principles generally accepted in the United States of America (GAAP) and with practices within the hotel and resort management industry. Principles of Consolidation The consolidated financial statements include the accounts of The Castle Group, Inc. and its wholly-owned subsidiaries: Hawaii Reservations Center Corp., HPR Advertising, Inc., Castle Resorts & Hotels, Inc., Castle Resorts & Hotels Thailand Ltd., NZ Castle Resorts and Hotels Limited (a New Zealand Corporation), NZ Castle Resorts and Hotels wholly-owned subsidiary, Mocles Holdings Limited (a New Zealand Corporation), Castle Resorts & Hotels NZ Ltd., Castle Group LLC (Guam), Castle Resorts & Hotels Guam Inc. and KRI Inc. dba Hawaiian Pacific Resorts (Interactive). Collectively, all of the companies above are referred to as the Company throughout these consolidated financial statements and accompanying notes. All significant inter-company transactions have been eliminated in the consolidated financial statements. Use of Management Estimates in Financial Statements The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Accounts Receivable The Company records an account receivable for revenue earned but not yet collected. The Company estimates allowances for doubtful accounts based on the aged receivable balances and historical losses. If the Company determines any account to be uncollectible based on significant delinquency or other factors, it is immediately written off. An allowance for bad debts has been provided based on estimated losses amounting to $178,376 and $190,579 as of December 31, 2015 and 2014, respectively. Property, Plant, and Equipment Property, plant, and equipment are recorded at cost. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounting records, and any resulting gain or loss is reflected in the Consolidated Statement of Operations for the period. The cost of maintenance and repairs is expensed as incurred. Renewals and betterments are capitalized and depreciated over their estimated useful lives. At December 31, 2015 and 2014, property, plant, and equipment consisted of the following: 2015 2014 Real estate - Podium $7,095,179 $8,093,522 Land and improvements 248,000 0 Equipment and furnishings 1,569,805 1,644,081 Less accumulated depreciation (2,880,609) (3,035,797) Net property, furniture and equipment $6,032,375 $6,701,806 Depreciation is computed using the declining balance and straight-line methods over the estimated useful life of the assets (Equipment and furnishings 5 to 7 years, Podium 50 years, and Improvements 30 years). Land is not depreciated. For the years ended December 31, 2015 and 2014, depreciation expense was $217,269 and $227,143, respectively. Goodwill and Intangibles The Company performs impairment tests of goodwill at a reporting unit level, which is one level below the operating segments. The Companys operating segments are primarily based on geographic responsibility, which is consistent with the way management runs its business. The goodwill impairment test consists of a two-step process, if necessary. The first step is to compare the fair value of a reporting unit to its carrying value, including goodwill. The Company typically uses discounted cash flow models to determine the fair value of a reporting unit. The assumptions used in these models are consistent with those the Company believes hypothetical marketplace participants would use. If the fair value of the reporting unit is less than its carrying value, the second step of the impairment test must be performed in order to determine the amount of impairment loss, if any. The second step compares the implied fair value of the reporting unit's goodwill with the carrying amount of that goodwill. If the carrying amount of the reporting unit's goodwill exceeds its implied fair value, an impairment charge is recognized in an amount equal to that excess. The loss recognized cannot exceed the carrying amount of goodwill. The Company has the option to perform a qualitative assessment of goodwill prior to completing the two-step process described above to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill and other intangible assets. If the Company concludes that this is the case, it must perform the two-step process. Otherwise, the Company will forego the two-step process and does not need to perform any further testing. During 2015, the Company performed qualitative assessments on the entire consolidated goodwill balance. The Company has completed its annual impairment testing of its goodwill at December 31 of each of the years presented. The Company has not recognized any impairment losses during the periods presented. Revenue Recognition In accordance with ASC 605: Revenue Recognition Specifically, the Company recognizes revenue from the management of resort properties according to terms of its various management contracts. The Company has two basic types of agreements. Under a Gross Contract the Company records revenue which is based on a percentage of the gross rental proceeds received from the rental of hotel or condominium units. Under a Gross Contract the Company pays a portion of the gross rental proceeds to the owner of the rental unit. The Company only records the difference between the gross rental proceeds and the amount paid to the owner of the rental unit as Revenue Attributed from Properties. Under the Gross Contract, the Company is responsible for all of the operating expenses for the hotel or condominium unit. Under a Net Contract, the Company receives a management fee that is based on a percentage of the gross rental proceeds received from the rental of hotel or condominium units. Under the Net Contract, the owner of the hotel or condominium unit is responsible for all of the operating expenses of the rental program covering the owners unit and the Company also typically receives an incentive management fee, which is based on the net operating profit of the covered property. Additionally, under a Net Contract, in most cases we employ on-site personnel to provide services such as housekeeping, maintenance and administration to property owners under the Companys management agreements and for such services the Company recognizes revenue in an amount equal to the expenses incurred. Revenues received under the Net Contract are recorded as Management and Service Income. Under both types of agreements, revenues are recognized after services have been rendered. A liability is recognized for any deposits received for which services have not yet been rendered. Under a Gross Contract, the Company records the expenses of operating the rental program at the property covered by the agreement. These expenses include housekeeping, food & beverage, maintenance, front desk, sales & marketing, advertising and all other operating costs at the property covered by the agreement. Under a Net Contract, the Company does not record the operating expenses of the property covered by the agreement, other than the personnel costs mentioned in the previous paragraph. The difference between the Gross and Net Contracts is that under a Gross Contract, all expenses, and therefore the ownership of any profits or the covering of any operating loss, belong to and is the responsibility of the Company; under a Net Contract, all expenses, and therefore the ownership or any profits or the covering of any operating loss belong to and is the responsibility of the owner of the property. The operating expenses of properties managed under a Gross Contract are recorded as Attributed Property Expenses. Advertising, Sales and Marketing Expenses The Company incurs sales and marketing expenses (mostly consisting of employee wages) in conjunction with the production of promotional materials, trade shows, and related travel costs. The Company expenses advertising and marketing costs as incurred or as the advertising takes place. For the years ended December 31, 2015 and 2014, total advertising expense was $1,083,883 and $1,050,200 respectively. Stock-Based Compensation The Company has accounted for stock-based compensation by recording an expense associated with the fair value of stock-based compensation over the requisite service period, which typically represents the vesting period. For employees, the measurement date is the grant date. For non-employees the measurement date is the earlier of the date of performance completion or the date of performance commitment if a sufficient disincentive to perform exists. The Company currently uses the Black-Scholes option valuation model to calculate the valuation of stock options and warrants at the measurement date. Option pricing models require the input of highly subjective assumptions, including the expected price volatility. Changes in these assumptions can materially affect the fair value estimate. In May 2014, the Company granted warrants to purchase 50,000 shares of the Companys common stock at a price of $1.00 per share, exercisable on or before May 28, 2019 to each of its eight members of the board of directors. Using the Black-Scholes model, the warrants were valued at $0.1233 for each warrant and the Company recorded an expense of $49,320 and an increase of the same amount to Additional Paid in Capital. In November of 2014, the Company issued 20,000 shares of common stock to an employee as compensation. The shares were unregistered shares and therefore are restricted shares. The Company valued the shares at $0.24 per share and recorded compensation expense of $4,800. In May of 2015, the Company issued 10,000 shares of common stock to an employee as compensation. The shares were unregistered shares and therefore are restricted shares. The Company valued the shares at $0.20 per share and recorded compensation expense of $2,000. Income Taxes Deferred income tax assets and liabilities are determined based upon differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Tax benefits are recognized only for tax positions that are more likely than not to be sustained upon examination by tax authorities. The Company has recorded tax benefits for the Companys US based operations as these benefits have been used in the past, and are likely to be used in the future. The Company does not recognize any tax benefits from its net operating losses from the Companys foreign operations, as it is not certain that these tax benefits will be realized in the future. The amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely to be realized upon ultimate settlement. Unrecognized tax benefits are tax benefits claimed in the Companys tax returns that do not meet these recognition and measurement standards. The Companys policy is to recognize potential interest and penalties accrued related to unrecognized tax benefits within income tax expense. For the years ended December 31, 2015 and 2014, the Company did not recognize any interest or penalties in its Statement of Operations, nor did it have any interest or penalties accrued in its Balance Sheet at December 31, 2015 and 2014, relating to unrecognized benefits. Basic and Diluted Earnings per Share Basic earnings per share of common stock were computed by dividing income available to common stockholders by the weighted average number of common shares outstanding. Diluted earnings per share were computed using the treasury stock method for vested warrants and the if-converted method for redeemable preferred stock. The calculation of diluted earnings per share for 2015 and 2014 includes 368,333 shares which would be issued upon conversion of the outstanding $100 par value redeemable preferred stock of the Company. During the years ended December 31, 2015 and 2014, the Company had warrants for shares totaling 400,000 outstanding at each year end, respectively, that were excluded from the computations of diluted net income per share because the exercise prices were greater than the market prices during the reporting periods. Concentration of Credit Risks The Company maintains its cash with several financial institutions in Hawaii and New Zealand. Balances maintained with these institutions are occasionally in excess of federally insured limits. As of December 31, 2015 and 2014, the Company had balances of $1,261,312 and $620,693, respectively, in excess of US federally insured limits of $250,000 per financial institution. Concentration in Market Area The Company manages hotel properties in Hawaii and New Zealand, and is dependent on the visitor industries in these geographic areas. Fair Value of Financial Instruments Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. A fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, may be used to measure fair value. The carrying values of cash and cash equivalents, accounts receivable, and accounts payable and accrued expenses approximate fair value due to the relatively short-term maturities of these financial instruments. The carrying values of notes receivable and notes payable approximate fair value as these notes have interest rates or imputed interest rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. Long-Lived Assets The Company regularly evaluates whether events or circumstances have occurred that indicate the carrying value of long-lived assets may not be recoverable. When factors indicate the asset may not be recoverable, The Company compares the related undiscounted future net cash flows to the carrying value of the asset to determine if impairment exists. If the expected future net cash flows are less than the carrying value, an impairment charge is recognized based on the fair value of the asset. No impairments were indicated or recorded during the years ended December 31, 2015 and 2014. Guarantees The Company records a liability for the fair value of a guarantee on the date a guarantee is issued or modified. The offsetting entry depends on the circumstances in which the guarantee was issued. Funding under the guarantee reduces the recorded liability. When no funding is forecasted, the liability is amortized into income on a straight-line basis over the remaining term of the guarantee. During the years ended December 31, 2015 and 2014, there was no amortization recorded. Investment in Limited Liability Company On July 23, 2010, the Company acquired a 7% common series interest in the ownership of a hotel located in Hawaii. As of December 31, 2015 and 2014, the ownership interest was 7.0% and 5.9% (resulting from dilution) respectively. The investment is accounted for as an equity method investment and during the years ended December 31, 2015 and 2014, the Company recognized $114,503 and $202,995, respectively, in other income resulting from the portion of net income attributable to the common series ownership interest. Foreign Currency Translation and Transaction Gains/Losses The US dollar is the functional currency of the Companys consolidated entities operating in the United States. The functional currency for the Companys consolidated entities operating outside of the United States is generally the currency of the country in which the entity primarily generates and expends cash. For consolidated entities whose functional currency is not the U.S. dollar, The Company translates its financial statements into U.S. dollars. Assets and liabilities are translated at the exchange rate in effect as of the financial statement date, and the line items of the results of operations are translated using the weighted average exchange rate for the year. Translation adjustments resulting from these translations are included as a separate component of stockholders equity. Gains and losses resulting from foreign currency transactions are included in the consolidated statements of operations. New Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (FASB) that are adopted by the Company as of the specified effective date. If not discussed, management believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on the Companys financial statements upon adoption. In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers The standard is effective for annual periods beginning after December 15, 2017, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). The Company is currently evaluating the impact of its pending adoption of ASU 2014-09 on the Companys consolidated financial statements and has not yet determined the method by which it will adopt the standard in 2018. In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements Going Concern. In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes In February 2016, the FASB issued ASU No. 2016-02, Leases |
Related Party Transactions Disc
Related Party Transactions Disclosure | 12 Months Ended |
Dec. 31, 2015 | |
Notes | |
Related Party Transactions Disclosure | 2. Related Party Transactions Hanalei Bay International Investors (HBII) As disclosed in Note 3, the Company has a receivable of $989,325 from Hanalei Bay International Investors (HBII). The Chairman and CEO of the Company is the sole shareholder of HBII Management, Inc., the managing General Partner of HBII. As security against this note receivable, the Company was assigned HBIIs right to receive proceeds directly from an unrelated real estate company. In that the collection of this receivable is subject to uncertainty and risks over which the Company has no control, there can be no assurance that the Company will be able to fully collect this receivable within the next ten years, if at all. In light of such uncertainties, as required by GAAP the Company has established a reserve for uncollectible amounts equal to the entire amount of the receivable. During 2015, the Company recovered $115,676 through the collection of the assignment. See Note 4 regarding the assignment of this receivable. Investment in LLC In July 2010, the Company acquired a 7% interest in a limited liability company that purchased one of the properties managed by the Company. After the purchase, the chief financial officer of Castle Resorts & Hotels, Inc. was appointed treasurer of a subsidiary of the limited liability company that owns the property (see Note 1). Related Party Loans As disclosed in Note 6, during 2002, the Companys Chairman and CEO advanced $117,316 to the Company for general working capital. The note bears interest at 10% and was due on or before January 1, 2016. In 2014, the CEO forgave accrued interest of $42,000 due on the note payable and the Company paid the balance of $35,698 in accrued interest during 2014. In January of 2015, the Companys Chairman and CEO agreed to forgive $14,000 of the principal balance provided that the Company make principal and interest payments which will amortize the remaining balance of the loan at the specified interest rate over three years, through December 31, 2017. During 2015, the Company made payments against the note of $31,072 and also made payments of $8,933 in interest earned on the note. In 2014, the Company reversed $30,269 of interest accrued in prior periods that was due to its Chairman and CEO as a result of the $42,000 forgiveness of accrued interest and made payments of $35,698 which brought the balance of accrued interest due as of December 31, 2014 down to zero. As of December 31, 2015, the Company had a note payable to its Chairman and CEO for $72,244. |
Notes Receivable
Notes Receivable | 12 Months Ended |
Dec. 31, 2015 | |
Notes | |
Notes Receivable | 3. Notes Receivable Notes receivable at December 31 consisted of the following: 2015 2014 Note receivable from HBII, secured by a direct assignment of HBII right to receive future proceeds from HBIIs ownership interest in unrelated real estate development company (Assigned to third parties- see Note 2 and 4) $ 989,325 $ 1,105,001 Less Reserve for Uncollectible Notes (989,325) (1,105,001) Notes Receivable from Oceanfront Realty, interest rate of 2%. Note is payment for the sale of one of the Company's management contracts. Payments are payable based on 30% of the net profits originating from the contract. 193,536 200,018 Notes Receivable, Total 193,536 200,018 Less Current Portion (15,000) (15,000) Notes Receivable, Total 178,536 185,018 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Notes | |
Commitments and Contingencies | 4. Commitments and Contingencies Leases The Company leases two office spaces that expire on February 28, 2017 and October 31, 2019. For the years ended December 31, 2015 and 2014, the Company paid $324,395 and $353,921, respectively, in lease expense for these leases. As of December 31, 2015, the future minimum rental commitment under these leases was $932,427. Year Amount 2016 314,854 2017 227,375 2018 211,876 2019 178,322 Total $932,427 Guarantee In 2004, as part of the Companys purchase of real estate in New Zealand, an assignment of $1,105,001 of the total note receivable from HBII was made to the seller of the real estate, with the Company remaining as guarantor should the note receivable not be collected before March 31, 2019 (see Note 2). In 2014, the Company amended the loan agreement whereby the assignment of the HBII note receivable was rescinded while the Company remained as guarantor on the total amount due to the seller of the real estate. As a result of the amendment, the Company has reclassified in 2014 the amounts previously recorded as Other long term obligations to Long term debt, net of current portion. In 2014, the Company extended the due date on the New Zealand real estate loan to March 31, 2019. Further, the extension provides that an additional extension to March 31, 2024 is available if the Company remains current with its obligations in connection with the purchase of the New Zealand real estate. Management Contracts The Company manages several hotels and resorts under management agreements expiring at various dates. Several of these management agreements contain automatic extensions for periods of 1 to 10 years. In addition, the Company has sales, marketing and reservations agreements with other hotels and resorts expiring at various dates through December 2022. Several of these agreements contain automatic extensions for periods of one month to five years. Fees received are based on revenues, net available cash flows or commissions as defined in the respective agreements. Litigation From time to time, there are claims and lawsuits pending against the Company involving complaints, which are normal and reasonably foreseeable in light of the nature of the Companys business. The ultimate liability of the Company, if any, cannot be determined at this time. Based upon consultation with counsel, management does not expect that the aggregate liability, if any, resulting from these proceedings would have a material effect on the Companys consolidated financial position, results of operations or liquidity. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2015 | |
Notes | |
Employee Benefits | 5. Employee Benefits The Company has a 401(k) Profit Sharing Plan (the Plan) available for its employees. Any employee with one-year of continuous service and 1,000 credited hours of service, who is at least twenty-one years old, is eligible to participate. For the years ended December 31, 2015 and 2014, the Company made no profit contributions. The Company also has a Flexible Benefits Plan (the Benefits Plan). The participants in the Benefits Plan are allowed to make pre-tax premium elections which are intended to be excluded from income as provided by Section 125 of the Internal Revenue Code of 1986. To be eligible, an employee must have been employed for 90 days. The benefits include group medical insurance, vision care insurance, disability insurance, cancer insurance, group dental coverage, group term life insurance, and accident insurance. |
Notes Payable
Notes Payable | 12 Months Ended |
Dec. 31, 2015 | |
Notes | |
Notes Payable | 6. Long Term Debt Long term debt at December 31 consisted of the following: 2015 2014 Note dated 12/31/02 from the Company's CEO , with interest at 10% due on or before 12/31/17, with monthly payments of $3,334 commencing January 2015, unsecured 72,244 117,316 Note dated 12/31/04, payable in New Zealand dollars, with an original face value of $8.6 million and secured by real estate in New Zealand and a general security agreement over assets to the Company. The note calls for payments of NZ $40,000 (US $27,376 at 12/31/15) per month. The note also calls for monthly interest payments to a New Zealand bank for a loan in favor of Mocles at the banks prime rate plus 2% which as of December 31, 2014 was 6.2%. The maturity date is March 31, 2019. The agreement does not provide for interest to be paid on the non-Mocles portion of the note payable so the Company has imputed interest of $200,040for the years ended December 31, 2014 and 2015 so that the combined interest rate paid on the note payable is approximately 4.5%. 5,692,373 6,996,307 Revolving line of credit with a bank for up to $300,000. The line is secured by a general security interest in the Companys assets. Draws against the line will bear interest at the banks base lending rate plus 2%, which as of December 31, 2015 was 6.375%. The line has a termination date of October 31, 2016.. 0 0 Term loan with a local bank dated June 19, 2015 with an original Face value of $200,000 secured by a general security interest in the Companys assets. The note calls for sixty monthly payments of $3,855 to be applied to principal and interest at a fixed rate of 5.875%. The maturity date is, June 19, 2020. 182,263 0 Revolving line of credit with a bank for up to NZ $300,000 (US$205,320). The line is secured by a general security interest in the Companys assets in New Zealand. Draws against the line will bear interest at the banks base lending rate plus 2%. The line is cancellable at any time by the bank. 0 0 Subtotal $ 5,946,880 $ 7,113,623 Less Current Portion 399,195 419,808 Long term debt, net of current portion $ 5,547,685 $ 6,693,815 The five year payout schedule for long term debt is as follows: Year Amount 2016 $ 399,195 2017 405,045 2018 369,490 2019 4,750,323 2020 22,827 Total $ 5,946,880 |
Stockholders Equity
Stockholders Equity | 12 Months Ended |
Dec. 31, 2015 | |
Notes | |
Stockholders Equity | 7. Redeemable Preferred Stock In 1999 and 2000, the Company issued a total of 11,050 shares of $100 par value redeemable preferred stock to certain officers and directors. Dividends are cumulative from the date of original issue and are payable semi-annually, when, and if declared by the board of directors beginning July 15, 1999, at a rate of $7.50 per annum per share. At December 31, 2015, undeclared and unpaid dividends on these shares were $1,347,483 or $121.94 per preferred share. These dividends are not accrued as a liability, as no declaration has occurred. The shares are nonvoting, and are convertible into the Companys common stock at an exercise price of $3.00 per share. As of January 15, 2001, the redeemable preferred stock is redeemable at the option of the Company at a redemption price of $100 per share plus accrued and unpaid dividends. 8. Common Stock During 2015, the Company issued 10,000 shares of unregistered stock to an employee of the Company as a compensation bonus. The shares were not registered with the Securities and Exchange Commission and are therefore restricted shares. The shares were valued at a price of $0.20 per share. The Company recorded compensation expense of $2,000, an increase in common stock of $200 and an increase in additional paid in capital of $1,800. During 2014, the Company issued 20,000 shares of unregistered stock to an employee of the Company as a compensation bonus. The shares were not registered with the Securities and Exchange Commission and are therefore restricted shares. The shares were valued at a price of $0.24 per share. The Company recorded compensation expense of $4,800, an increase in common stock of $400 and an increase in additional paid in capital of 4,400. Common Stock Options and Warrant The Company does not have Stock Based Incentive, Stock Purchase or Stock Option or Warrant Plans. No options or warrants were outstanding prior to January 1, 2008. In May 2014, the Company granted warrants to purchase 50,000 shares of the Companys common stock at a price of $1.00 per share, exercisable on or before May 28, 2019 to each of its eight members of the board of directors. Using the Black-Scholes model, the warrants were valued at $0.1233 for each warrant and the Company recorded an expense of $49,320 and an increase of the same amount to Additional Paid-in Capital. Black-Scholes inputs included: Volatility 97.68%, Expected Term 5 years, Risk Free Rate 1.5%, Dividend Yield 0%. During 2010, the Company issued 80,000 of its common stock to non-employee directors of the Company. The shares were valued at $0.25 per share which equaled the closing price of the common stock on the date of issuance and the entire valuation was recorded as compensation expense on that date. In addition to the shares, the non-employee directors also received, for every share issued, a warrant to purchase an additional share of the Companys common stock at a price of $1.00. No warrants were exercised and the warrants expired in 2015. Changes in warrants for the year ended December 31, 2015 were as follows: Number of Shares Weighted Average Exercise Price Remaining Contractual Term (in Years) Intrinsic Value Outstanding and exercisable at December 31, 2013 80,000 $1.00 0.58 $0 Granted 400,000 1.00 4.42 0 Exercised 0 0 0 0 Forfeited/Expired 0 0 0 0 Outstanding and exercisable at December 31, 2014 480,000 $1.00 3.78 $0 Granted 0 0 0 0 Exercised 0 0 0 0 Forfeited/Expired (80,000) 1.00 0 0 Outstanding and exercisable at December 31, 2015 400,000 $1.00 3.42 0 The following table summarizes information about compensatory warrants outstanding at December 31, 2015: Exercise Price Number Outstanding Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price $1.00 400,000 3.42 $1.00 400,000 $1.00 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Notes | |
Income Taxes | 9. Income Taxes The provision for income taxes consists of the following: 2015 2014 Current 0 0 Deferred Federal 200,994 216,025 State 25,394 27,293 Foreign 0 0 Total Provision (Benefit) $226,388 $243,318 The components of the Companys deferred tax assets and liabilities are as follows: 2015 2014 Deferred Tax Assets Current Accounts Receivable $66,550 $70,633 Accrued Vacation 149,035 201,659 Net Operating Loss 411,594 350,000 Less: Current portion of Valuation Allowance (118,062) (148,200) Total Current, Net 509,117 474,092 Non-Current Note Receivable 298,072 364,832 Net Operating Loss Carryforwards 188,002 490,647 Less: Valuation Allowance (95,743) (203,735) Total Non-Current, Net 390,331 651,744 Total Deferred Tax Asset, Net $899,448 $1,125,836 As of December 31, 2015, the Company had net operating loss carry forwards amounting to $1,076,794 for domestic jurisdictions which expire on various dates through 2028 and $915,652 for foreign jurisdictions that do not expire. The Company expects to utilize $509,117 of the domestic net operating losses and other current deferred tax assets for the year ended December 31, 2016, and has therefore classified this portion of the deferred tax asset associated with the loss carryforward as a current asset on the Companys consolidated balance sheet. The Company has reported a full valuation allowance on deferred tax assets in foreign jurisdictions, which changed from $351,935 to $213,805 during the year ended December 31, 2015 resulting in a decrease of $138,130. The Companys US based net operating losses available for future use are as follows: Year Available Net Operating Loss Expires 2002 268,697 2022 2007 138,950 2027 2008 669,147 2028 Total Available 1,076,794 Income tax expense differs from amounts computed by applying the statutory Federal rate to pretax income as follows: 2015 2014 Expected US income tax on Consolidated Income before Tax effects of: $122,510 $303,760 State income tax on consolidated income before tax net federal benefit 15,220 27,293 Change in valuation allowance (138,130) (193,246) Non-deductible expenses 151,461 130,380 Earnings in foreign jurisdictions taxes at rates different from the statutory U.S. federal rate 1,629 2,612 Tax-exempt income (15,566) 0 Currency valuation adjustment 52,691 0 Other, net 36,573 (27,481) Effective Tax Provision $226,388 $243,318 The Company has evaluated its uncertain tax positions and determined that any required adjustments would not have a material impact on the Company's balance sheets, statements of operations, or statements of cash flows. A reconciliation of the unrecognized tax benefits for the years ending December 31, 2015 and 2014 is presented in the table below: 2015 2014 Beginning Balance $0 $0 Additions based on tax positions related to the current year 0 0 Reductions for tax positions of prior years 0 0 Reductions due to expiration of statute of limitations 0 0 Settlements with taxing authorities 0 0 Ending Balance $0 $0 The tax years 2012 through 2015 remain open to examination for federal income tax purposes and by other major taxing jurisdictions to which the Company is subject. |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2015 | |
Notes | |
Business Segments | 10. Foreign Operations and Business Segments The Company has one business segment consisting of resort and hotel management services. The consolidated financial statements include the following related to international operations (which are predominately in New Zealand): Revenues of $3,018,458 in 2015 and $3,971,106 in 2014; net income of $40,723 in 2015 and $265,306 in 2014; and net fixed assets of $5,761,376 in 2015 and $6,682,316 in 2014. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Notes | |
Subsequent Events | 11. Subsequent Events In February of 2016, the Company signed a management contract for a 140 room hotel located in Hawaii under a Net Contract agreement. |
Summary of Significant Accoun18
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Policies | |
Organization | Organization The Castle Group, Inc. was incorporated under the laws of the State of Utah on August 21, 1981. The Castle Group, Inc. operates in the hotel and resort management industry in the State of Hawaii, New Zealand, and the Commonwealth of Saipan under the trade name Castle Resorts and Hotels. The accounting and reporting policies of The Castle Group, Inc. conform with accounting principles generally accepted in the United States of America (GAAP) and with practices within the hotel and resort management industry. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of The Castle Group, Inc. and its wholly-owned subsidiaries: Hawaii Reservations Center Corp., HPR Advertising, Inc., Castle Resorts & Hotels, Inc., Castle Resorts & Hotels Thailand Ltd., NZ Castle Resorts and Hotels Limited (a New Zealand Corporation), NZ Castle Resorts and Hotels wholly-owned subsidiary, Mocles Holdings Limited (a New Zealand Corporation), Castle Resorts & Hotels NZ Ltd., Castle Group LLC (Guam), Castle Resorts & Hotels Guam Inc. and KRI Inc. dba Hawaiian Pacific Resorts (Interactive). Collectively, all of the companies above are referred to as the Company throughout these consolidated financial statements and accompanying notes. All significant inter-company transactions have been eliminated in the consolidated financial statements. |
Use of Management Estimates in Financial Statements | Use of Management Estimates in Financial Statements The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. |
Accounts Receivable | Accounts Receivable The Company records an account receivable for revenue earned but not yet collected. The Company estimates allowances for doubtful accounts based on the aged receivable balances and historical losses. If the Company determines any account to be uncollectible based on significant delinquency or other factors, it is immediately written off. An allowance for bad debts has been provided based on estimated losses amounting to $178,376 and $190,579 as of December 31, 2015 and 2014, respectively. |
Property, Plant, and Equipment | Property, Plant, and Equipment Property, plant, and equipment are recorded at cost. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounting records, and any resulting gain or loss is reflected in the Consolidated Statement of Operations for the period. The cost of maintenance and repairs is expensed as incurred. Renewals and betterments are capitalized and depreciated over their estimated useful lives. At December 31, 2015 and 2014, property, plant, and equipment consisted of the following: 2015 2014 Real estate - Podium $7,095,179 $8,093,522 Land and improvements 248,000 0 Equipment and furnishings 1,569,805 1,644,081 Less accumulated depreciation (2,880,609) (3,035,797) Net property, furniture and equipment $6,032,375 $6,701,806 Depreciation is computed using the declining balance and straight-line methods over the estimated useful life of the assets (Equipment and furnishings 5 to 7 years, Podium 50 years, and Improvements 30 years). Land is not depreciated. For the years ended December 31, 2015 and 2014, depreciation expense was $217,269 and $227,143, respectively. |
Goodwill and Intangibles | Goodwill and Intangibles The Company performs impairment tests of goodwill at a reporting unit level, which is one level below the operating segments. The Companys operating segments are primarily based on geographic responsibility, which is consistent with the way management runs its business. The goodwill impairment test consists of a two-step process, if necessary. The first step is to compare the fair value of a reporting unit to its carrying value, including goodwill. The Company typically uses discounted cash flow models to determine the fair value of a reporting unit. The assumptions used in these models are consistent with those the Company believes hypothetical marketplace participants would use. If the fair value of the reporting unit is less than its carrying value, the second step of the impairment test must be performed in order to determine the amount of impairment loss, if any. The second step compares the implied fair value of the reporting unit's goodwill with the carrying amount of that goodwill. If the carrying amount of the reporting unit's goodwill exceeds its implied fair value, an impairment charge is recognized in an amount equal to that excess. The loss recognized cannot exceed the carrying amount of goodwill. The Company has the option to perform a qualitative assessment of goodwill prior to completing the two-step process described above to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill and other intangible assets. If the Company concludes that this is the case, it must perform the two-step process. Otherwise, the Company will forego the two-step process and does not need to perform any further testing. During 2015, the Company performed qualitative assessments on the entire consolidated goodwill balance. The Company has completed its annual impairment testing of its goodwill at December 31 of each of the years presented. The Company has not recognized any impairment losses during the periods presented. |
Revenue Recognition | Revenue Recognition In accordance with ASC 605: Revenue Recognition Specifically, the Company recognizes revenue from the management of resort properties according to terms of its various management contracts. The Company has two basic types of agreements. Under a Gross Contract the Company records revenue which is based on a percentage of the gross rental proceeds received from the rental of hotel or condominium units. Under a Gross Contract the Company pays a portion of the gross rental proceeds to the owner of the rental unit. The Company only records the difference between the gross rental proceeds and the amount paid to the owner of the rental unit as Revenue Attributed from Properties. Under the Gross Contract, the Company is responsible for all of the operating expenses for the hotel or condominium unit. Under a Net Contract, the Company receives a management fee that is based on a percentage of the gross rental proceeds received from the rental of hotel or condominium units. Under the Net Contract, the owner of the hotel or condominium unit is responsible for all of the operating expenses of the rental program covering the owners unit and the Company also typically receives an incentive management fee, which is based on the net operating profit of the covered property. Additionally, under a Net Contract, in most cases we employ on-site personnel to provide services such as housekeeping, maintenance and administration to property owners under the Companys management agreements and for such services the Company recognizes revenue in an amount equal to the expenses incurred. Revenues received under the Net Contract are recorded as Management and Service Income. Under both types of agreements, revenues are recognized after services have been rendered. A liability is recognized for any deposits received for which services have not yet been rendered. Under a Gross Contract, the Company records the expenses of operating the rental program at the property covered by the agreement. These expenses include housekeeping, food & beverage, maintenance, front desk, sales & marketing, advertising and all other operating costs at the property covered by the agreement. Under a Net Contract, the Company does not record the operating expenses of the property covered by the agreement, other than the personnel costs mentioned in the previous paragraph. The difference between the Gross and Net Contracts is that under a Gross Contract, all expenses, and therefore the ownership of any profits or the covering of any operating loss, belong to and is the responsibility of the Company; under a Net Contract, all expenses, and therefore the ownership or any profits or the covering of any operating loss belong to and is the responsibility of the owner of the property. The operating expenses of properties managed under a Gross Contract are recorded as Attributed Property Expenses. |
Advertising, Sales and Marketing Expenses | Advertising, Sales and Marketing Expenses The Company incurs sales and marketing expenses (mostly consisting of employee wages) in conjunction with the production of promotional materials, trade shows, and related travel costs. The Company expenses advertising and marketing costs as incurred or as the advertising takes place. For the years ended December 31, 2015 and 2014, total advertising expense was $1,083,883 and $1,050,200 respectively. |
Stock-based Compensation | Stock-Based Compensation The Company has accounted for stock-based compensation by recording an expense associated with the fair value of stock-based compensation over the requisite service period, which typically represents the vesting period. For employees, the measurement date is the grant date. For non-employees the measurement date is the earlier of the date of performance completion or the date of performance commitment if a sufficient disincentive to perform exists. The Company currently uses the Black-Scholes option valuation model to calculate the valuation of stock options and warrants at the measurement date. Option pricing models require the input of highly subjective assumptions, including the expected price volatility. Changes in these assumptions can materially affect the fair value estimate. In May 2014, the Company granted warrants to purchase 50,000 shares of the Companys common stock at a price of $1.00 per share, exercisable on or before May 28, 2019 to each of its eight members of the board of directors. Using the Black-Scholes model, the warrants were valued at $0.1233 for each warrant and the Company recorded an expense of $49,320 and an increase of the same amount to Additional Paid in Capital. In November of 2014, the Company issued 20,000 shares of common stock to an employee as compensation. The shares were unregistered shares and therefore are restricted shares. The Company valued the shares at $0.24 per share and recorded compensation expense of $4,800. In May of 2015, the Company issued 10,000 shares of common stock to an employee as compensation. The shares were unregistered shares and therefore are restricted shares. The Company valued the shares at $0.20 per share and recorded compensation expense of $2,000. |
Income Taxes | Income Taxes Deferred income tax assets and liabilities are determined based upon differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Tax benefits are recognized only for tax positions that are more likely than not to be sustained upon examination by tax authorities. The Company has recorded tax benefits for the Companys US based operations as these benefits have been used in the past, and are likely to be used in the future. The Company does not recognize any tax benefits from its net operating losses from the Companys foreign operations, as it is not certain that these tax benefits will be realized in the future. The amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely to be realized upon ultimate settlement. Unrecognized tax benefits are tax benefits claimed in the Companys tax returns that do not meet these recognition and measurement standards. The Companys policy is to recognize potential interest and penalties accrued related to unrecognized tax benefits within income tax expense. For the years ended December 31, 2015 and 2014, the Company did not recognize any interest or penalties in its Statement of Operations, nor did it have any interest or penalties accrued in its Balance Sheet at December 31, 2015 and 2014, relating to unrecognized benefits. |
Basic and Diluted Earnings Per Share | Basic and Diluted Earnings per Share Basic earnings per share of common stock were computed by dividing income available to common stockholders by the weighted average number of common shares outstanding. Diluted earnings per share were computed using the treasury stock method for vested warrants and the if-converted method for redeemable preferred stock. The calculation of diluted earnings per share for 2015 and 2014 includes 368,333 shares which would be issued upon conversion of the outstanding $100 par value redeemable preferred stock of the Company. During the years ended December 31, 2015 and 2014, the Company had warrants for shares totaling 400,000 outstanding at each year end, respectively, that were excluded from the computations of diluted net income per share because the exercise prices were greater than the market prices during the reporting periods. |
Concentration of Credit Risks | Concentration of Credit Risks The Company maintains its cash with several financial institutions in Hawaii and New Zealand. Balances maintained with these institutions are occasionally in excess of federally insured limits. As of December 31, 2015 and 2014, the Company had balances of $1,261,312 and $620,693, respectively, in excess of US federally insured limits of $250,000 per financial institution. Concentration in Market Area The Company manages hotel properties in Hawaii and New Zealand, and is dependent on the visitor industries in these geographic areas. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. A fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, may be used to measure fair value. The carrying values of cash and cash equivalents, accounts receivable, and accounts payable and accrued expenses approximate fair value due to the relatively short-term maturities of these financial instruments. The carrying values of notes receivable and notes payable approximate fair value as these notes have interest rates or imputed interest rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. |
Long-lived Assets | Long-Lived Assets The Company regularly evaluates whether events or circumstances have occurred that indicate the carrying value of long-lived assets may not be recoverable. When factors indicate the asset may not be recoverable, The Company compares the related undiscounted future net cash flows to the carrying value of the asset to determine if impairment exists. If the expected future net cash flows are less than the carrying value, an impairment charge is recognized based on the fair value of the asset. No impairments were indicated or recorded during the years ended December 31, 2015 and 2014. |
Guarantees | Guarantees The Company records a liability for the fair value of a guarantee on the date a guarantee is issued or modified. The offsetting entry depends on the circumstances in which the guarantee was issued. Funding under the guarantee reduces the recorded liability. When no funding is forecasted, the liability is amortized into income on a straight-line basis over the remaining term of the guarantee. During the years ended December 31, 2015 and 2014, there was no amortization recorded. |
Investment in Limited Liability Company | Investment in Limited Liability Company On July 23, 2010, the Company acquired a 7% common series interest in the ownership of a hotel located in Hawaii. As of December 31, 2015 and 2014, the ownership interest was 7.0% and 5.9% (resulting from dilution) respectively. The investment is accounted for as an equity method investment and during the years ended December 31, 2015 and 2014, the Company recognized $114,503 and $202,995, respectively, in other income resulting from the portion of net income attributable to the common series ownership interest. |
Foreign Currency Transactions and Translations Policy | Foreign Currency Translation and Transaction Gains/Losses The US dollar is the functional currency of the Companys consolidated entities operating in the United States. The functional currency for the Companys consolidated entities operating outside of the United States is generally the currency of the country in which the entity primarily generates and expends cash. For consolidated entities whose functional currency is not the U.S. dollar, The Company translates its financial statements into U.S. dollars. Assets and liabilities are translated at the exchange rate in effect as of the financial statement date, and the line items of the results of operations are translated using the weighted average exchange rate for the year. Translation adjustments resulting from these translations are included as a separate component of stockholders equity. Gains and losses resulting from foreign currency transactions are included in the consolidated statements of operations. |
New Accounting Pronouncements | New Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (FASB) that are adopted by the Company as of the specified effective date. If not discussed, management believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on the Companys financial statements upon adoption. In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers The standard is effective for annual periods beginning after December 15, 2017, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). The Company is currently evaluating the impact of its pending adoption of ASU 2014-09 on the Companys consolidated financial statements and has not yet determined the method by which it will adopt the standard in 2018. In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements Going Concern. In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes In February 2016, the FASB issued ASU No. 2016-02, Leases |
Summary of Significant Accoun19
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Tables/Schedules | |
Property, Plant and Equipment | 2015 2014 Real estate - Podium $7,095,179 $8,093,522 Land and improvements 248,000 0 Equipment and furnishings 1,569,805 1,644,081 Less accumulated depreciation (2,880,609) (3,035,797) Net property, furniture and equipment $6,032,375 $6,701,806 |
Notes Receivable (Tables)
Notes Receivable (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Tables/Schedules | |
Schedule of Notes Receivable | Notes receivable at December 31 consisted of the following: 2015 2014 Note receivable from HBII, secured by a direct assignment of HBII right to receive future proceeds from HBIIs ownership interest in unrelated real estate development company (Assigned to third parties- see Note 2 and 4) $ 989,325 $ 1,105,001 Less Reserve for Uncollectible Notes (989,325) (1,105,001) Notes Receivable from Oceanfront Realty, interest rate of 2%. Note is payment for the sale of one of the Company's management contracts. Payments are payable based on 30% of the net profits originating from the contract. 193,536 200,018 Notes Receivable, Total 193,536 200,018 Less Current Portion (15,000) (15,000) Notes Receivable, Total 178,536 185,018 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Tables/Schedules | |
Operating Leases of Lessee Disclosure | Year Amount 2016 314,854 2017 227,375 2018 211,876 2019 178,322 Total $932,427 |
Notes Payable (Tables)
Notes Payable (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Tables/Schedules | |
Schedule of Accrued Liabilities | Long term debt at December 31 consisted of the following: 2015 2014 Note dated 12/31/02 from the Company's CEO , with interest at 10% due on or before 12/31/17, with monthly payments of $3,334 commencing January 2015, unsecured 72,244 117,316 Note dated 12/31/04, payable in New Zealand dollars, with an original face value of $8.6 million and secured by real estate in New Zealand and a general security agreement over assets to the Company. The note calls for payments of NZ $40,000 (US $27,376 at 12/31/15) per month. The note also calls for monthly interest payments to a New Zealand bank for a loan in favor of Mocles at the banks prime rate plus 2% which as of December 31, 2014 was 6.2%. The maturity date is March 31, 2019. The agreement does not provide for interest to be paid on the non-Mocles portion of the note payable so the Company has imputed interest of $200,040for the years ended December 31, 2014 and 2015 so that the combined interest rate paid on the note payable is approximately 4.5%. 5,692,373 6,996,307 Revolving line of credit with a bank for up to $300,000. The line is secured by a general security interest in the Companys assets. Draws against the line will bear interest at the banks base lending rate plus 2%, which as of December 31, 2015 was 6.375%. The line has a termination date of October 31, 2016.. 0 0 Term loan with a local bank dated June 19, 2015 with an original Face value of $200,000 secured by a general security interest in the Companys assets. The note calls for sixty monthly payments of $3,855 to be applied to principal and interest at a fixed rate of 5.875%. The maturity date is, June 19, 2020. 182,263 0 Revolving line of credit with a bank for up to NZ $300,000 (US$205,320). The line is secured by a general security interest in the Companys assets in New Zealand. Draws against the line will bear interest at the banks base lending rate plus 2%. The line is cancellable at any time by the bank. 0 0 Subtotal $ 5,946,880 $ 7,113,623 Less Current Portion 399,195 419,808 Long term debt, net of current portion $ 5,547,685 $ 6,693,815 |
Schedule of Accounts Payable and Accrued Liabilities | Year Amount 2016 $ 399,195 2017 405,045 2018 369,490 2019 4,750,323 2020 22,827 Total $ 5,946,880 |
Stockholders Equity (Tables)
Stockholders Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Tables/Schedules | |
Schedule of Common Stock Options and Warrants | Number of Shares Weighted Average Exercise Price Remaining Contractual Term (in Years) Intrinsic Value Outstanding and exercisable at December 31, 2013 80,000 $1.00 0.58 $0 Granted 400,000 1.00 4.42 0 Exercised 0 0 0 0 Forfeited/Expired 0 0 0 0 Outstanding and exercisable at December 31, 2014 480,000 $1.00 3.78 $0 Granted 0 0 0 0 Exercised 0 0 0 0 Forfeited/Expired (80,000) 1.00 0 0 Outstanding and exercisable at December 31, 2015 400,000 $1.00 3.42 0 |
Schedule of Compensatory Warrants | Exercise Price Number Outstanding Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price $1.00 400,000 3.42 $1.00 400,000 $1.00 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Tables/Schedules | |
Schedule of Components of Income Tax Expense (Benefit) | 2015 2014 Current 0 0 Deferred Federal 200,994 216,025 State 25,394 27,293 Foreign 0 0 Total Provision (Benefit) $226,388 $243,318 |
Schedule of Deferred Tax Assets and Liabilities | 2015 2014 Deferred Tax Assets Current Accounts Receivable $66,550 $70,633 Accrued Vacation 149,035 201,659 Net Operating Loss 411,594 350,000 Less: Current portion of Valuation Allowance (118,062) (148,200) Total Current, Net 509,117 474,092 Non-Current Note Receivable 298,072 364,832 Net Operating Loss Carryforwards 188,002 490,647 Less: Valuation Allowance (95,743) (203,735) Total Non-Current, Net 390,331 651,744 Total Deferred Tax Asset, Net $899,448 $1,125,836 |
Summary of Operating Loss Carryforwards | Year Available Net Operating Loss Expires 2002 268,697 2022 2007 138,950 2027 2008 669,147 2028 Total Available 1,076,794 |
Schedule of Effective Income Tax Rate Reconciliation | 2015 2014 Expected US income tax on Consolidated Income before Tax effects of: $122,510 $303,760 State income tax on consolidated income before tax net federal benefit 15,220 27,293 Change in valuation allowance (138,130) (193,246) Non-deductible expenses 151,461 130,380 Earnings in foreign jurisdictions taxes at rates different from the statutory U.S. federal rate 1,629 2,612 Tax-exempt income (15,566) 0 Currency valuation adjustment 52,691 0 Other, net 36,573 (27,481) Effective Tax Provision $226,388 $243,318 |
Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible | 2015 2014 Beginning Balance $0 $0 Additions based on tax positions related to the current year 0 0 Reductions for tax positions of prior years 0 0 Reductions due to expiration of statute of limitations 0 0 Settlements with taxing authorities 0 0 Ending Balance $0 $0 |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Details) | 1 Months Ended | 12 Months Ended | |||||
May. 31, 2015shares | Nov. 30, 2014USD ($)$ / sharesshares | May. 31, 2014USD ($) | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2010$ / shares | Dec. 31, 2013 | |
Details | |||||||
Allowance for Doubtful Accounts Receivable, Current | $ 178,376 | $ 190,579 | |||||
Real Estate Investment Property, at Cost | 7,095,179 | 8,093,522 | |||||
Land and Land Improvements | 248,000 | 0 | |||||
Fixtures and Equipment, Gross | 1,569,805 | 1,644,081 | |||||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (2,880,609) | (3,035,797) | |||||
Property plant & equipment, net | $ 6,032,375 | 6,701,806 | |||||
Property Plant and Equipment Useful Life Minimum | 5 | ||||||
Property Plant and Equipment Useful Life Maximum | 7 | ||||||
Real Estate Useful Life | 50 | ||||||
Depreciation | $ 217,269 | 227,143 | |||||
Marketing and Advertising Expense | $ 1,083,883 | $ 1,050,200 | |||||
Warrants Granted to Each Director | shares | 50,000 | ||||||
Warrants Outstanding Weighted Average Exercise Price | 1 | 1 | 1 | 1 | |||
Warrants Granted to Each Board Member Value Per Share | $ / shares | $ 0.1233 | ||||||
Warrants granted as compensation | $ 49,320 | $ 0 | $ 49,320 | ||||
Stock issued as compensation, shares | shares | 20,000 | 10,000 | 20,000 | ||||
Price Per Share of Stock Issued as Compensation | $ / shares | $ 0.24 | $ 0.20 | $ 0.24 | $ 0.25 | |||
Employee Stock Ownership Plan (ESOP), Compensation Expense | $ 4,800 | $ 1,800 | $ 4,400 | ||||
Stock Issued During Period, Shares, Issued for Services | shares | 10,000 | ||||||
Shares Issued, Price Per Share | $ / shares | $ 0.20 | ||||||
Stock issued as compensation | $ 2,000 | $ 4,800 | |||||
Shares Used InComputation Of Diluted Earnings Loss Per Share | shares | 368,333 | ||||||
Preferred stock par value | $ / shares | $ 100 | $ 100 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | shares | 400,000 | ||||||
Amount Above Federally Insured Limit | $ 1,261,312 | $ 620,693 | |||||
Cash, FDIC Insured Amount | $ 250,000 | ||||||
Equity Method Investment, Ownership Percentage | 7.00% | ||||||
Equity Method Investment Ownership Percentage After Dilution | 7.00% | 5.90% | |||||
Investment income | $ 114,503 | $ 202,995 |
Related Party Transactions Di26
Related Party Transactions Disclosure (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2010 | Dec. 31, 2002 | |
Details | ||||
Accounts Receivable From Hanalei-Bay International Investors | $ 989,325 | $ 1,105,001 | ||
Loans and Leases Receivable, Related Parties, Collections | 115,676 | |||
Equity Method Investment, Ownership Percentage | 7.00% | |||
Due to Officers or Stockholders, Current | 72,244 | 117,316 | $ 117,316 | |
Accounts Payable, Interest-bearing, Interest Rate | 10.00% | |||
CEO Accrued Interest Forgave | 42,000 | |||
Proceeds from Collection of (Payments to Fund) Long-term Loans to Related Parties | 35,698 | |||
Debt Instrument, Decrease, Forgiveness | 14,000 | |||
Payments on notes to related parties | 31,072 | $ 0 | ||
Interest Income, Related Party | 8,933 | |||
Accrued Interest Reversed by Company | 30,269 | |||
Increase (Decrease) in Due to Related Parties | $ 72,244 |
Notes Receivable (Details)
Notes Receivable (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Details | ||
Accounts Receivable From Hanalei-Bay International Investors | $ 989,325 | $ 1,105,001 |
Less Reserve For Uncollectible Notes For Hanalei-Bay International | (989,325) | (1,105,001) |
Notes Receivable Oceanfront Realty | 193,536 | 200,018 |
Financing Receivable, Gross | 193,536 | 200,018 |
Accounts, Notes, Loans and Financing Receivable, Net, Current | (15,000) | (15,000) |
Note receivable | $ 178,536 | $ 185,018 |
Commitments and Contingencies28
Commitments and Contingencies (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Details | ||
Operating Leases, Rent Expense | $ 324,395 | $ 353,921 |
Operating Leases, Future Minimum Payments Due | 932,427 | |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | 314,854 | |
Operating Leases, Future Minimum Payments, Due in Two Years | 227,375 | |
Operating Leases, Future Minimum Payments, Due in Three Years | 211,876 | |
Operating Leases, Future Minimum Payments, Due in Four Years | 178,322 | |
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 1,105,001 |
Notes Payable (Details)
Notes Payable (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2002 |
Details | ||||||||
Due to Officers or Stockholders, Current | $ 72,244 | $ 117,316 | $ 117,316 | |||||
HBII Note Balance | 5,692,373 | 6,996,307 | ||||||
Bank Revolving Line Of Credit | 0 | 0 | ||||||
Term Loan With Local Bank | 182,263 | 0 | ||||||
Bank Revolving Line Of Credit New Zealand | 0 | 0 | ||||||
Notes Payable | 5,946,880 | 7,113,623 | ||||||
Notes Payable, Current | 399,195 | 419,808 | ||||||
Total Non-Current Liabilities | 5,547,685 | $ 6,693,815 | ||||||
Notes Payable payout | $ 22,827 | $ 4,750,323 | $ 369,490 | $ 405,045 | $ 399,195 | |||
Total Notes Payable Balance | $ 5,946,880 |
Stockholders Equity (Details)
Stockholders Equity (Details) | 1 Months Ended | 12 Months Ended | ||||
Nov. 30, 2014USD ($)$ / sharesshares | May. 31, 2014USD ($) | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2013$ / sharesshares | Dec. 31, 2010$ / sharesshares | |
Details | ||||||
Preferred stock outstanding | shares | 11,050 | 11,050 | ||||
Preferred stock par value | $ / shares | $ 100 | $ 100 | ||||
Preferred Stock, Dividend Payment Terms | Dividends are cumulative from the date of original issue and are payable semi-annually, when, and if declared by the board of directors beginning July 15, 1999, at a rate of $7.50 per annum per share. | |||||
Dividends, Common Stock | $ | $ 1,347,483 | |||||
Dividends Payable, Amount Per Share | $ / shares | $ 121.94 | |||||
Redeemable Preferred Stock Exerise Price | $ / shares | 3 | |||||
Redeemable Preferred Stock Redemption Price Per Share | $ / shares | $ 100 | |||||
Stock issued as compensation, shares | shares | 20,000 | 10,000 | 20,000 | |||
Price Per Share of Stock Issued as Compensation | $ / shares | $ 0.24 | $ 0.20 | $ 0.24 | $ 0.25 | ||
Stock issued as compensation, value | $ | $ 2,000 | $ 4,800 | ||||
Increase In Common Stock | $ | 200 | 400 | ||||
Employee Stock Ownership Plan (ESOP), Compensation Expense | $ | $ 4,800 | $ 1,800 | $ 4,400 | |||
Warrants Granted to Each Director | shares | 50,000 | |||||
Warrants Outstanding Weighted Average Exercise Price | 1 | 1 | 1 | 1 | ||
Warrants Granted to Each Board Member Value Per Share | $ / shares | $ 0.1233 | |||||
Warrants granted as compensation | $ | $ 49,320 | $ 0 | $ 49,320 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 97.68% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 5 years | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.50% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | |||||
Share-based Goods and Nonemployee Services Transaction, Quantity of Securities Issued | shares | 80,000 | |||||
Warrants Outstanding | shares | 400,000 | 480,000 | 80,000 | |||
Weighted Average Contractural Term | 3.42 | 3.78 | 0.58 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Intrinsic Value, Amount Per Share | $ / shares | $ 0 | $ 0 | $ 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | shares | 400,000 | |||||
Weighted Average Contractural Term Warrants Granted | 4.42 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Expirations | shares | (80,000) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2028 | Dec. 31, 2027 | Dec. 31, 2022 | |
Details | |||||
Current Income Tax Expense (Benefit) | $ 0 | $ 0 | |||
Deferred Federal Income Tax Expense (Benefit) | 200,994 | 216,025 | |||
Deferred State and Local Income Tax Expense (Benefit) | 25,394 | 27,293 | |||
Deferred Foreign Income Tax Expense (Benefit) | 0 | 0 | |||
Income tax provision | 226,388 | 243,318 | |||
Deferred Income Taxes and Other Assets, Current | 66,550 | 70,633 | |||
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Compensated Absences | 149,035 | 201,659 | |||
Deferred Tax Asset Net Operating Loss Current | 411,594 | 350,000 | |||
Deferred Tax Assets, Valuation Allowance, Current | (118,062) | (148,200) | |||
Deferred tax asset | 509,117 | 474,092 | |||
Deferred Income Taxes and Other Assets, Noncurrent | 298,072 | 364,832 | |||
Operating Loss Carryforwards | 188,002 | 490,647 | |||
Deferred Tax Assets, Valuation Allowance | (95,743) | (203,735) | |||
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | 390,331 | 651,744 | |||
Deferred Tax Assets, Net | 899,448 | 1,125,836 | |||
Deferred Tax Assets, Operating Loss Carryforwards | 1,076,794 | ||||
foreign jurisdictions net operating loss carry forwards | 915,652 | ||||
Loss Carryforward utilized | 509,117 | ||||
foreign jurisdictions valation allowance | 213,805 | 351,935 | |||
Valuation Allowances and Reserves, Period Increase (Decrease) | 138,130 | 193,246 | |||
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | $ 669,147 | $ 138,950 | $ 268,697 | ||
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount | 122,510 | 303,760 | |||
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Amount | 15,220 | 27,293 | |||
Valuation Allowances and Reserves, Period Increase (Decrease) | (138,130) | (193,246) | |||
Non-Deductible Expenses | 151,461 | 130,380 | |||
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Amount | 1,629 | 2,612 | |||
Effective Income Tax Rate Reconciliation, Tax Exempt Income, Amount | (15,566) | 0 | |||
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount | 52,691 | 0 | |||
Other, net | 36,573 | (27,481) | |||
Deferred Income Tax Expense (Benefit) | 226,388 | 243,318 | |||
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions | 0 | 0 | |||
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions | 0 | 0 | |||
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | 0 | 0 | |||
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | 0 | 0 | |||
Unrecognized Tax Benefits, Period Increase (Decrease) | $ 0 | $ 0 |
Business Segments (Details)
Business Segments (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Details | ||
Entity Wide Disclosure On Geographic Areas Revenue From External Customers Contributed To Foreign Countries | $ 3,018,458 | $ 3,971,106 |
New Zealand Net Income Loss | $ 40,723 | $ 265,306 |
Disclosure on Geographic Areas, Long-Lived Assets | net fixed assets of $5,761,376 in 2015 and $6,682,316 in 2014. |